I find it humorous really. Some failed African states and some in the mediterranean. Namely Russsia and Iran. You don't need to get kicked out to start another alternative. China started CIPS and they are free to join. You think we shouldn't ostracize Russian/Iran...why? You support evil regimes who terrorize and invade other countries to contunue using SWIFT system to fund their activities? The BRICS nations are also expanding, with some very influential country additions recently. These nations are also buying more gold in your basket than the western nations can afford. Recently, India took delivery/possession of 100 tonnes of Gold that was stored in London. They have BRICS bank too for lending to member countries. They are not going to sit idle with all the above in their plans. It won't be a frontal challenge to the dollar. But it will come and dollar dominance will take another knock. These countries are growing much faster than the western world with the population to boot.
I already expained deficit spending and that's not how it works. That's just the cherry. Main reason it helps keep a country's pegged currency stable.
The interesting question is whether the West showing their willingness to use the dollar hegemony as a strategic weapon in political battles will spur on countries like China on the road to Central Bank Digital Currency and this CBDC as an alternative to the dollar. I will not be surprised if the dollar sanctions will inspire the Chinese to speed up their development of a CBDC which will be a useful and tempting alternative to settlement in dollars. So it will not be a question of giving up but a question of when it will be taken away.
I know this and noted. All you have said is its been 50 years therefore everyone should expect a change even when there's no better alternative. Change for the sake of changing. How is yours better? When there is a trade surplus there must be a deficit somewhere. Like I said: those countries are free to choose what currency to trade in. Most chose to use dollar because they don't want to run a deficit.
Its a free market. You can't blame the dollar for causing inflation alone. Ignoring what's going on in the rest of the world. The fact that COVID happened and came out of China that dusrupted the supply chain. Didn't Europe print money? Didnt Singapore? China today by far is the largest printer of currency. Didn't Europe eagerly agree, if not lead the way, on sanctioning Russia for its blatant act of aggression against Ukraine to kick them out of SWIFT? Isn't it China that is heavily subsidizing and supporting it's "picked winners" that is extremely unfair to trade? Of course the US is acting for its own interest. What country does not? But it's own interest is often aligned with the rest of the non-aggressive world. Sorry that the US isn't energy dependent on OPEC anymore. Again, all of these problems actually originated outside of the US. Don't hate the US for being the "leader" in cleaning up the mess, and for any missteps to be felt by others that also contributed to inflation. Don't pretend Europe, China et al. are innocent victims here. A little misplaced frustration is common enough, but it is entirely irrelevant to the big picture at hand.
For the fact that there are winners and losers within countries, not just between countries. e.g. US trade deficits benefit part of the US economy and certain segments of the US economy, not the whole US economy. The same is true with respect to surplus countries.
To the extent, if I might add, that trade surpluses are used to build up productive investment in surplus generating countries, these surpluses increase global wealth.
